8.6 C
New York
Monday, March 4, 2024
Home Challanger banks Top 10 global buy-now-pay-later (BNPL) service providers

Top 10 global buy-now-pay-later (BNPL) service providers

Buy-now-pay-later (BNPL), which enables customers to extend the expense of pricey things, has recently experienced a boom in popularity. These fintech companies dominate that market.

Some of the most promising and lucrative fintechs are born out of the buy-now-pay-later (BNPL) movement’s meteoric rise. Customers can spread the expense of expensive online purchases across numerous payments, either weekly or monthly, thanks to this fintech sector, which didn’t exist ten years ago. It has been well-received, leading to values of more than $1 billion for some of BNPL’s pioneers.

Below, we’ll look at the Top 10 firms leading this market globally and analyze the subtle differentiation that is assisting them to carve out a place inside BNPL as the category starts to take root inside physical stores as well.

10. Openpay

Founded in Australia in 2014, Openpay provides flexible payment terms for markets that it considers underserved – like home improvement, healthcare, car repairs and service, memberships, and education as well as retail. Customers can pay at checkout for goods with a face value of up to $20,000 and defer payment for as long as 24 months. Since launching in Australia, the company has since expanded into three continents – including a launch in the UK in 2019 – and in 2020, Openpay launched a BNPL service in the US.

9. Four

This fintech company’s catchy name gives away what its unique selling point is right away: clients can spread the cost of online purchases like clothing or electronics across four monthly installments with Four, based in the US. Customers may take advantage of a convenient BNPL experience without undergoing a credit check thanks to Four’s API, which integrates smoothly into existing online checkouts and makes the repayment procedure very obvious. Particularly tiny, independent retailers favor the service.

8. Spiltit

Splitit, a company with headquarters in Atlanta, says it can assist merchants in releasing the full potential of their online stores, increasing client retention and conversion rates. The cost of products can be divided across several monthly payments by shoppers. It is particularly appealing to have the option of paying the amount in full up front or spreading it over three, six, or nine months. Splitit asserts that it can address the problems with BNPL that many firms have because of the degree of control and transparency over payments it offers.

7. Zip

Australia’s Zip, one of the BNPL providers with the quickest growth, aims to become the preferred payment method for both consumers and businesses. It has clients that are major corporations like Amazon, Best Buy, eBay, and Uber and operates in the four markets of Australia, Canada, the United States, and New Zealand. In July 2021, Zip launched a new global brand and expansion goals. In August of the same year, insurtech company Cover Genius partnered with the BNPL company.

6. Tamara

Tamara is a Saudi Arabian fintech company looking to take advantage of the region’s growing need for BNPL solutions. The business provides a simple, interest-free method of spreading payments across numerous installments. The Riyadh-based company complies perfectly with Shariah, as one might anticipate.

Since its September 2020 start, it has had remarkable development, adding more than 3 million clients and 4,000 partner retailers, including IKEA, Adidas, Namshi, and Jarir. The Saudi BNPL fintech raised $100 million in a Series B investment last August.

5. Tabby

Tabby, a BNPL fintech situated in Dubai this time, is another company with a focus on the MENA region. It bills itself as a “shop now, pay later” option that enables users to spread out payments for items over four interest-free monthly installments.

In the previous year, Tabby had 3 million active customers and had five times as much revenue. Since beginning its card program, it has also issued more than 150,000 Tabby cards, and today, in-store sales account for more than 10% of the total volume of the business. Like Tamara, Tabby has also recently secured funding, showing that MENA is an appealing investment area for BNPL. In January, the UAE-based BNPL fintech secured US$58mn in a Series C round.

4. Latitude

LatitudePay offers customers the ability to stretch the expense of expensive things over more instalments than the majority of BNPL providers on our list so far, which is the only reason why most BNPL services are beneficial and easy for users. Customers may spread the cost over 10 equal instalments with the Singapore-based fintech, which means they don’t have to worry as much about their bank account being empty all at once. Latitude asserts that consumers may get going in a matter of minutes and that there are no interest fees associated with any of the payment instalments.

3. Affirm

Affirm, a San Francisco-based industry giant on our list, has established a reputation as one of the top BNPL suppliers over the past few years. Max Levchin, the CEO and Founder of Affirm, is a pioneer in the fintech industry who has amassed a powerful BNPL empire. In January 2021, the company went public, boosting its worth from US$12 billion to US$24 billion. Additionally, it has so far raised from investors about US$1.5 billion.

Customers of Affirm have the option of spreading out the cost across monthly payments, which is helpful for larger-ticket products, or paying in four installments every two weeks. Since the epidemic, it has changed to become a “remote-first” employer, allowing staff members the freedom and flexibility to work from home while continuing to maintain physical offices.

2. Klarna

Klarna has undoubtedly been the face of the BNPL industry in Europe for the past few years. Prior to being obliged to lay off 10% of its personnel and prepare for a recession in several of its key regions, difficult economic conditions had initially drove it to a valuation of more than US$40 billion. This exorbitant valuation quickly dropped to a relatively modest US$6bn.

Sebastian Siemiatkowski, founder of Stockholm-based Klarna, has refocused the company on the future with renewed hope. To bring cash-strapped customers back into the fold, Klarna has launched a price comparison tool in three European regions.

1. Afterpay

With no fewer than four Antipodean BNPL companies on this list alone, Afterpay is another sign of the strength of Australia’s fintech ecosystem. Entrepreneur Nick Molner and investor Anthony Eisen, who lives next door, established Afterpay in 2014. The company has grown steadily over the past nine years, achieving the kind of success that would make Molnar Australia’s youngest billionaire and result in a significant sale.

Customers can spread the cost of items into six interest-free installments using Afterpay. The company imposes spending caps that only progressively expand when clients make their repayments on time in response to issues with affordability that plague the market. Nearly 1,000 individuals work for the Melbourne-based BNPL pioneer, which has millions of active customers. In 2021, it was bought out by Jack Dorsey’s payments company, Block, for US$29bn.

Recent posts

NEW Revolut UK CEO to make Conference Debut at MoneyLIVE Summit

MoneyLIVE has today announced that Revolut’s newly appointed UK CEO will be making her conference debut at MoneyLIVE Summit 2024, which is...

2024’s Financial Innovators: A New Era of Banking Startups 

In the wake of the COVID-19 pandemic, our world witnessed an unprecedented shift towards digitalization. The banking industry, in particular, has been...

C-suite Banking and Payments Leaders From Across Europe Set to Meet at London’s MoneyLIVE Summit in March

On the 6-7 March 2024 MoneyLIVE Summit will return to London’s QEII Centre to unite over 1000 banking and payments leaders from...

The Evolution of Digital Wallets: A Shift from Physical Cards by 2030

By 2030, we can expect digital wallets to become the preferred payment instrument, offering a myriad of non-payment-related services for consumers.